What is Accounting Software?

Accounting Software is an application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system. It may be developed in-house by the company or organization using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications.

It varies greatly in its complexity and cost. The market has been undergoing considerable consolidation since the mid 1990’s, with many suppliers ceasing to trade or being bought by larger groups.

In many cases, implementation can be a bigger consideration than the actual software chosen when it comes down to the total cost of ownership for the business. Most midmarket and larger applications are sold exclusively through resellers, developers and consultants. Those organizations generally pass on a license fee to the software vendor and then charge the client for installation, customization and support services. Other organizations however, sell to, consult with and support clients directly, eliminating the reseller.

Most accountants today, especially the more youthful generation, have heard of saas accounting software by now. Saas accounting software is simply using software that is on someone else’s server, you access the server via the internet and all your data is stored on a secure server.

The single best advantage of saas accounting software is the fact that you can access your accounting information/software from anywhere on the planet, and from any computer connected to the internet.

With saas accounting software it’s as simple as one, two, three, just type the URL of your saas accounting software into your browser. Once you are at the site just log in and you will have all your accounting information right at your fingertips (really cool). If you can’t get to your computer no problem, just dial up the internet on your Blackberry or other mobile device and access your data that way.